Forex: Reserves drop to $13.21b from $13.37b

KARACHI: Foreign exchange reserves dropped to $13.208 billion in the week ending December 14 from $13.374 billion the previous week, the central bank said on Thursday. Reserves held by the State Bank of Pakistan (SBP) rose to $8.587 billion from $8.514 billion a week earlier, while those held by commercial banks dropped to $4.621 billion from $4.860 billion. Foreign exchange reserves hit a record $18.31 billion in July last year, boosted by inflows of $411 million, including a $191.9 million loan from the World Bank and a $196.8 million loan from the Asian Development Bank. Higher exports and record remittances have also supported Pakistan’s reserves Remittances from Pakistanis abroad rose 14.16% to $5.982 billion in the first five months, July to November, of the fiscal year 2012-13, from $5.240 billion in the same period last year. Pakistan’s reserves have recently been drained by debt repayments on a $7-billion International Monetary Fund loan. The next repayment is due in February 2013.

Published in The Express Tribune, December 21^st, 2012.